REIT (Real Estate Investment Trust)
A listed UK company that owns income-producing property and pays out most of its rent.
UK REITs were introduced in 2007. To qualify, a REIT must distribute at least 90% of its property rental income as a Property Income Distribution (PID), which is taxed as property income rather than as a normal dividend. Listed examples include British Land, Land Securities (Landsec), SEGRO, and Tritax Big Box. REITs give you exposure to commercial property (offices, warehouses, retail parks) without buying a building, with daily liquidity on the LSE. PIDs held inside a stocks and shares ISA or SIPP escape the 20% withholding tax that applies outside a wrapper.
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